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Factors That Affect The Cost of Car Insurance

Knowing what factors affect the cost of car insurance can help you save a significant amount of money. Below are some of the main ones.

Your age

Age is always a big factor that insurance providers take into account. Younger people often feel it’s unfair that they have to pay more for car insurance but the reason for this is that people in the 18-24 age bracket are considerably more likely to be involved in accident than older people. For this reason they have to pay more for insurance.

Value of the vehicle

The value of the vehicle being insured is another big thing that affects the cost of insurance. This is why if you’re buying a new vehicle, it’s important to think not just about the cost of the vehicle itself and fuel costs, but also the amount you’ll have to pay for insurance as this often the biggest recurring expense.

Security of the vehicle

Vehicle security will also play a big role in how much insurance costs. It you want to keep the cost of car insurance to a minimum then it’s a good idea to take any measures you can to make your vehicle more secure, such as using a steering wheel lock and dash cam. You should ideally have somewhere secure to keep your vehicle when it’s not in use too, such as a locked garage.

Level of cover

The level of cover you get will of course affect the cost of insurance too. The cheapest type of cover that you can get is a third party only policy. This essentially just protects other road users if you’re involved in an accident where you’re the one to blame. The more cover options you add, the more the policy will cost.

Convictions

If you have a criminal conviction then this can affect the cost of car insurance significantly. How much the cost of cover is affected will depend on how serious the conviction was as well as how serious the punishment was. After a certain period of time, convictions become ‘spent’ and you’re no longer obligated to declare them.

Named drivers

The named drivers on a policy are another thing that can bump up the price. Insurance providers will look at who the named drivers on the policy are and consider things like age, driving experience, convictions, points on licence etc.